The long-awaited proposal on China’s so-called market economy status (MES) was published today. The European Commission has proposed a new non-standard methodology, which constitutes a significant change to the EU’s anti-dumping legislation. The new methodology would no longer classify countries as market economies or non-market economies, in other words a de facto grant of MES to China.
Gerd Götz, Director General of European Aluminium, said:
“Today the European Commission announced a completely new paradigm for EU trade. The question of market economy or non-market economy could virtually disappear overnight. A change of this magnitude creates significant uncertainty for European industries like aluminium.
Amidst the uncertainty around this new legal framework, the EU should ensure a strong and well-established foundation. That foundation is without a doubt the EU’s longstanding five market economy criteria. These criteria must be the cornerstone of any new methodology.
Trade defence is not a question of politics but rather of rules. A rules-based trade system allows all trading partners to compete freely and fairly. If we do not hold our partners accountable, the EU risks losing valuable innovation, investments and jobs.”